IOTA Foundation (IOTA) and Norway’s largest financial services group DNB ASA (Den Norske Bank) recently signed a memorandum (MOU) of understanding. According to reports, IOTA and DNB are looking forward to cooperate in the exploration of a wide range of applications of the IOTA Tangle.
Current state of affairs
The two are hoping to join hands towards the establishment of new business models and that will be across their respective industries. The Head of DLT at DNB Lasse Meholm while addressing several journalists outlined that the target of the project was to boost the understanding of the technology.
The capacity of the technology to handle large volumes of micro-transactions per second is one of its most distinguishable attributes. There is great need to soften the relationship that exists between the crypto industry and most of the Norwegian banks.
The IOTA Foundation recently made a commitment to strengthen its moves in separating the serious crypto-projects from the useless ones. At the beginning of this month, Norwegian crypto exchange was frustrated after the court ruled in favor of Nordea Bank on accusations that its account had been closed illegally. It took the stand that Nordea had closed its account citing concerns of on inadequate anti-money laundering mechanisms.
Evidently, most of the financial institutions around the world have lately been exploring use cases of blockchain technology. It was a short while back that non-profit organization Payments Canada, Toronto Stock Exchange operator TMX Group and the central bank of Canada conducted and completed tests. They arrived at the conclusion that blockchain technology was quite efficient when it got to the instantaneous securities settlements.
As the month was opening, JPMorgan Chase & Co (NYSE:JPM) reportedly filed a blockchain-powered peer-to-peer payments patent between banks and it is worth noting that the company’s patent application was a rather unique one. That was because it proposed using a distributed ledger and that was how it became possible for it to process the various payments on a real-time basis. That eliminated the need of reliance on a trusted third party to do what it does best- holding a ‘golden copy’ of the audit trail.